Which of the Following Statements About the Consumers' Responses to Rising

question 2

Multiple Choice

Which of the following statements about the consumers' responses to rising gasoline prices is correct?

• A)Because gasoline is a necessity,consumers do not decrease their quantity demanded in either the short run or the long run.
• B)Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run.
• C)Consumers decrease their quantity demanded more in the short run than in the long run.
• D)Consumers decrease their quantity demanded more in the long run than in the short run.

---

Definitions:

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.

Corporate Headquarters

The main office or center of operations for a business where significant managerial and administrative work is conducted.